Consolidated Financial Results for the Nine Months Ended December 31, 2011 (Prepared in Accordance with U.S. GAAP) February 2, 2012 KONAMI CORPORATION Address: 7-2, Akasaka 9-chome, Minato-ku, Tokyo, Japan Stock code number, TSE: 9766 Ticker symbol, NYSE: KNM URL: http://www.konami.co.jp/en/index.html Shares listed: Tokyo Stock Exchange, New York Stock Exchange, and London Stock Exchange Representative: Kagemasa Kozuki / Representative Director and Chairman of the Board, President Contact: Yasuyuki Yamaji / Corporate Officer, General Manager, Corporate Strategy (Phone: +81-3-5771-0222) Beginning date of Not yet determined dividend payment: Adoption of U.S. GAAP: Yes (Yen amounts are rounded to the nearest million) 1. Consolidated Financial Results for the Nine Months Ended December 31, 2011 (1) Consolidated Results of Operations (Millions of Yen, except percentages and per share amounts) Income before Net income income taxes and attributable to Operating equity in net income KONAMI Net revenues income of affiliated company CORPORATION Nine months ended December 31, 2011 194,522 30,921 30,018 17,046 % change from previous period 3.3 % 86.9 % 97.2 % 77.3 % Nine months ended December 31, 2010 188,308 16,541 15,224 9,615 % change from previous period (1.4)% (3.4)% (5.6)% (9.5)% Note: Comprehensive income Nine months ended December 31, 2011: ¥15,361 Nine months ended December 31, 2010: ¥ 6,506 Basic net income attributable to Diluted net income attributable KONAMI CORPORATION to KONAMI CORPORATION per share (yen) per share (yen) Nine months ended December 31, 2011 123.19 123.19 Nine months ended December 31, 2010 72.04 72.04 (2) Consolidated Financial Position (Millions of Yen, except percentages and per share amounts) KONAMI KONAMI CORPORATION CORPORATION stockholders’ Total assets Total equity stockholders’ equity equity ratio December 31, 2011 317,705 208,239 207,984 65.5% March 31, 2011 313,891 198,407 193,914 61.8% 1 2. Cash Dividends Cash dividends per share (yen) Record Date First Second Third Year end Annual quarter end quarter end quarter end Year ended March 31, 2011 - 16.00 - 16.00 32.00 Year ending March 31, 2012 - 25.00 Year ending March 31, 2012 25.00 50.00 -Forecast- Note: Change in earnings forecasts for the fiscal year ending March 31, 2012 from the latest announced projected cash dividend: Yes 3. Consolidated Earnings Forecast for the Year Ending March 31, 2012 (Millions of Yen, except percentages and per share data) Net income Net income attributable to Net income attributable to KONAMI Operating before income KONAMI CORPORATION Net revenues income taxes CORPORATION per share (yen) Year ending March 31, 2012 265,000 40,000 38,500 22,000 158.92 % change from previous year 2.7% 92.4% 101.8% 70.1% Note: Change in earnings forecasts for the fiscal year ending March 31, 2012 from the latest earnings forecast: Yes 4. Other (1) Changes in significant consolidated subsidiaries during the period (status changes of subsidiaries due to changes in the scope of consolidation) : None (2) Adoption of simplified methods in accounting principles for quarterly consolidated financial statements: None (3) Changes in accounting principles, procedures and reporting policies: 1. Changes accompanying amendment of accounting standard: None 2. Other: None (4) Number of shares issued (Common Stock) 1. Number of shares issued (including treasury stock) Nine months ended December 31, 2011 143,500,000 shares Year ended March 31, 2011 143,500,000 shares 2. Number of Treasury Stock: Nine months ended December 31, 2011 4,877,912 shares Year ended March 31, 2011 7,359,029 shares 3. Average number of shares outstanding: Nine months ended December 31, 2011 138,377,599 shares Nine months ended December 31, 2010 133,460,423 shares 2 Information Regarding the Quarterly Review Procedures: This report is outside the scope of the procedures for review of quarterly consolidated financial statements as required under the Financial Instruments and Exchange Act of Japan. The aforementioned procedures have not been completed for the quarterly financial statements included in this document as of the time of disclosure of this document. Cautionary Statement with Respect to Forward-Looking Statements and Other Matters: Statements made in this document with respect to our current plans, estimates, strategies and beliefs, including the above forecasts, are forward-looking statements about our future performance. These statements are based on management's assumptions and beliefs in light of information currently available to it and, therefore, you should not place undue reliance on them. A number of important factors could cause actual results to be materially different from and worse than those discussed in forward-looking statements. Such factors include, but are not limited to: (i) changes in economic conditions affecting our operations; (ii) fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen, the U.S. dollar and the Euro; (iii) our ability to continue to win acceptance of our products, which are offered in highly competitive markets characterized by the continuous introduction of new products, rapid developments in technology and subjective and changing consumer preferences; (iv) our ability to successfully expand internationally with a focus on our Digital Entertainment business, Gaming & Systems business and Pachinko & Pachinko Slot Machines business; (v) our ability to successfully expand the scope of our business and broaden our customer base through our Health & Fitness business; (vi) regulatory developments and changes and our ability to respond and adapt to those changes; (vii) our expectations with regard to further acquisitions and the integration of any companies we may acquire; and (viii) the outcome of existing contingencies. Please refer to pages 10, 11 and 12 for further information regarding our business forecasts. KONAMI CORPORATION (the “Company”) discloses the supplemental data for the consolidated financial statements via the Company’s website on February 2, 2012. 3 1. Business Performance 1. Analysis of Business Performance (1) Business Overview The business environment surrounding the Konami Group remains uncertain mainly due to the impact of the Great East Japan Earthquake, the continued strength of the Japanese yen and the European currency crisis, despite signs of a rebound in personal consumption in some quarters. In the entertainment market, business opportunities in the game industry are increasing in step with growth in social networking services (SNS) as various mobile devices become increasingly popular. Meanwhile, the tourism market related to the gaming market, such as the tourism market in Las Vegas, where a severe business environment has persisted, is expected to bottom out. Major casino operators are still cautious about their investments, however, we intend to continue to closely monitor market trends. In the health and fitness industry, challenging business conditions persist in the fitness club industry as consumer spending remained under pressure due to uncertainty over the future economic climate. Against this backdrop, in the Digital Entertainment segment of Konami Group, sales of social games, including DRAGON COLLECTION, SENGOKU COLLECTION and Professional Baseball Dream Nine, increased steadily. JIKKYOU PAWAFURU PUROYAKYU 2011, a home video game title, also proved popular. In addition, WORLD SOCCER Winning Eleven 2012, the latest installment of the Winning Eleven (known in the U.S. and Europe as Pro Evolution Soccer) series, was launched in Japan following the U.S. and Europe, and sold steadily. In our Gaming & Systems segment, sales of products such as the Podium video slot machine and the Advantage 5 and Advantage Revolution mechanical slot machine series. and sales through participation agreements (in which profits are shared with casino operators) increased and continued to be favorable. In the Pachinko and Pachinko Slot Machines segment, we saw a recovery in parts procurement and other aspects of our supply chain that were impacted by the Great East Japan Earthquake. On the other hand, we found it difficult to procure certain electronic parts due to the major flooding in Thailand, but we were able to minimize the impact of such disruptions on production. In this context, we delivered solid performance, with the sales volume of MAGICAL HALLOWEEN 3 reaching the highest level of any of the Konami Group’s pachinko slot machines and the release of GAMBARE GOEMON 2, a pachinko slot machine featuring original content. In our Health & Fitness segment, we developed and introduced new services, in order to meet the diversifying needs of customers, utilizing IT, which is one of Konami Group’s strengths, in our health management, exercise and nutritional guidance services, and we provided upgraded services to our customers whose health consciousness is on the rise. In addition, while some of our directly managed facilities had been closed due to the Great East Japan Earthquake, with the reopening in August 2011 of Konami Sports Club Sendai Nagamachi (Sendai City, Miyagi Prefecture), which was the last of the remaining closed facilities, all our directly managed facilities have resumed operations. In terms of the consolidated results for the nine months ended December 31, 2011, net revenues amounted to 4 ¥194,522 million (a year-on-year increase of 3.3%), operating income was ¥30,921 million (a year-on-year increase of 86.9%), income before income taxes and equity in